Trump is promising big tariffs. Businesses are ready to hike prices
If former President Donald Trump wins the presidential election next week and returns to the White House, he’s poised to massively raise tariffs on foreign imports. U.S. companies are readying their response — raising prices on consumers. Trump has pledged to impose general tariffs of between 10% and 20% on all imports, along with a 60% tariff on Chinese goods. He’s also threatened a “ 100% tariff ” on countries that “leave” the U.S. dollar and tariffs of as much as 2,000% on foreign-made vehicles. Although Trump has repeatedly touted his love of tariffs — “The most beautiful word in the dictionary is tariff,” he recently said — companies aren’t nearly as ecstatic. “If there are 10% to 60% tariffs that get enacted on all of our trade partners, clearly that’s going to create some level of disruption,” Compass Diversified Holdings ( CODI+6.21% ) CEO Elias Sabo said on a recent earnings call. “You know, there is no way that any company can absorb those kind of tariff increases.” I...